The deal is being financed by the notorious activist investor group Toscafund, which already holds a 28 per cent stake in the business.

Toscafund has offered 30p a share for the company through a newly incorporated wholly owned entity. The offer price – a 25 per cent premium to where shares closed on Tuesday – values Circle at £75.2m. The shares Tosca already owns will not be part of the deal, but will be exchanged for loan notes.

Circle’s board believes the offer is in the best interest of shareholders. Non-executive chairman Michael Kirkwood said: ‘Under the single ownership of a well-resourced bidder, and without the costs and distractions of a public listing, the management team will have greater flexibility to accelerate growth opportunities.’

Chief executive officer Paolo Pieri added: ‘It is a positive endorsement to have such strong support from a shareholder with a commitment to our future growth and ambitions, as well as a demonstrated track record of investment in their companies.’

Toscafund has gained a reputation for its activist approach. Last year it called for the chairman of tool hire firm Speedy Hire to be replaced, only for shareholders to vote for Jan Astrand to remain.

The group, whose chief executive Martin Hughes is nicknamed ‘Rottweiler’, still has 19.4 per cent of that business.

Yesterday’s announcement came as Circle reported its full-year results. Revenue climbed 4.4 per cent to £133.6m in 2016 and the firm reduced its loss to £3.1m, from £4.9m the previous year.

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The triggering of Article 50 did little to deter the FTSE 100. The blue-chip index finished up 0.4 per cent, or 30.3 points, at 7373.72.

Infrastructure investment company 3i was the highest riser as it was announced that one of its holdings, Environmental Scientifics Group, is to be bought for £30m – some 39 per cent more than 3i had valued the business a year ago. Shares leapt by 5.7 per cent, or 40p, to 740.5p.

AIM-listed surveillance systems firm Petards Group advanced after a major contract win.

It will supply its CCTV and door opening systems to Swiss-based train-maker Stadler Bussnang from June in a deal worth £4.3m.

Stadler’s vehicles are used on the London Tramlink. Petards shares yesterday surged 15.8 per cent, or 4.5p, to 33p.

Commercial flooring firm James Halstead edged up after reporting pre-tax profit was up 0.8 per cent to £23.2m in the half-year to December 31. Revenue climbed 4.3 per cent to £119.6m and shareholders will see their interim dividend hiked 7.1 per cent to 3.75p.

Chief executive Mark Halstead said that despite a tough six months in the UK and cost increases, it delivered record results. A weaker pound has boosted exports, offsetting a fall in UK turnover. Shares nudged up 0.7 per cent, or 3.25p, to 496p.

Tech business Sepura slipped after a setback in Hytera’s takeover of the business. The Department for Business, Energy and Industrial Strategy has said it is minded to initiate a review of the acquisition by the Chinese firm.

The offer for the business was first made back in December. Shares in Sepura tumbled 12.1 per cent, or 1.88p, to 13.62p.